| Buying
a business in Thailand and making sure the all the paperwork
and documentation is correct can be a daunting task.
The obvious difficulties are language problems, culture
differences and unfamiliar business practices.
Please
see below for an overview of the legal issues involved
when investing in the Thai tourism industry.
THAI LIMITED COMPANY
The most popular structure of land & business purchase
for foreign investors is through a Limited Liability
Company. In Thailand, a Limited Company is considered
a Thai Juristic Entity and can own land, real estate
and property.
A foreign investor
may hold 39% of the company shares at the time of the
initial land transfer increasing to 49% when the company
fully owns the land. The foreign investor may then elect
to legally become the only director of the company,
ensuring that any and all dealings of the company and
its assets are within the foreign investors control.
LEASEHOLD
AGREEMENTS
Leasehold Agreements are another option for the foreign
investor. A lease is normally offered for an initial
period of 30 years, with two further prepaid options
of 30 years renewal, giving a total of 90 years lease
guaranteed.
Clauses allowing
freehold ownership are written into the agreement thereby
allowing a freehold ownership should Thai law alter
to allow full foreign ownership of land and property.
Also included
in the agreement are clauses covering the right to sell,
sub-let or transfer the lease agreement making a leasehold
purchase a viable option.
THAILAND
BOARD OF INVESTMENT
For
corporate investments, particularly within the hotel
and resort industry, the Thailand Board Of Investment
(B.O.I) offers unique incentives for outright control
of your business in Thailand.
First-One Property has
it's own legal consultants who are specialist in B.O.I
applications.
Minimum requirements are
hotel to have at least 100 rooms. For further details
please contact
us.
LEGAL
QUESTIONS
We have our own legal team and translation service available
to help with any questions and offer advice on the best
options.
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